Zip rallies after posting record earnings in the third quarter
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More news: Shares in Zip climbed in afternoon trade after the digital financial services company posted a 41.5% jump in its third quarter cash earnings before interest and tax to $65.1 million, driven by strong momentum in its US and ANZ businesses.
Shares had risen 15.2% to $2.36 at 12:31pm AEST.
Zip records a 41.5% jump in quarterly earnings on strong US revenue
The news: Zip has posted a 41.5% jump in third quarter cash earnings before interest and tax to $65.1 million compared to the prior corresponding period.
The numbers: The digital financial services company reported an increase in quarterly operating margin to 19.4%, alongside a 20.2% jump in total income to $335.2 million.
Revenue margin increased to 8.4%, while active customers reached 6.5 million at the end of the quarter. Merchants on the platform increased 12.7% year-on-year to reach 93,000.
The context: The company attributed the strong quarterly results to positive year-on-year revenue growth in the US, which rose 43.3%, alongside continued momentum in the ANZ business, where total transaction volume increased 4.8% year on year.
Zip has upgraded guidance for its FY26 group cash earnings before interest and tax to be at least $260 million and expects a group revenue margin of around 8%.
The source: ASX
